Swissquote Europe Review
Swissquote Europe provides a single account type for commission-free trading in over 70 currency pairs, commodities, bonds, and stock indices.
Micro lots are available for trade with Swissquote Europe, yet there is no Islamic (swap-free) service available to Muslim clients with this broker, nor a managed-account service.
Swissquote Europe is the trading name of Swissquote Ltd., the London-based subsidiary of Swissquote Bank, which provides online forex, commodities and stock indices trading services for traders based in the European Union.
Swissquote Bank Ltd. is Switzerland’s leading online financial service provider and global leader in online Forex brokerage, serving more than 200,000 clients worldwide.
The Swissquote Group has offices in Zurich, Bern, Dubai, Malta, London and Hong Kong and currently employs over 500 staff.
Security of Funds
As part of an international banking group, there is no question about the reputation and reliability of Swissquote Europe as a forex broker and the security of its clients’ funds.
Swissquote Ltd. is a fully-owned subsidiary of Swissquote Bank Ltd., which is among the few institutions holding a banking license from the Swiss Financial Market Supervisory Authority (FINMA). Getting such a license is not an easy task, as applicants must comply with a set of draconian requirements, including a minimum capital requirement of CHF 20 million. Moreover, Swiss forex brokers are obliged to sign the Swiss Banks and Securities Dealers agreement, which protects all customer deposits of up to CHF 100,000.
Swissquote Ltd. is authorised and regulated by the Financial Conduct Authority (FCA), which means it is held to high ethical, security and transparency standards. To acquire a license from the UK financial watchdog, UK-based brokerages must hold a minimum of €730 000 net tangible assets in order to prove their financial stability and to keep clients` funds in segregated bank accounts.
Regulation by FCA also involves additional guarantee to clients’ funds, since they fall under the Financial Services Compensation Scheme (FSCS), where the maximum compensation cover is £50,000 per person in the event that a broker becomes insolvent.
Average Spreads & Commissions
The minimum spreads on EUR/USD offered by this broker amount to 0.9 pips, which is average for the forex market. The broker charges no commission fees, as it gets its compensation through the price spread.
In comparison, Trading212 (also FCA-regulated) provides variable spreads amounting to 0,9 pips on EUR/USD on its commission-free accounts. If you need further information, you may look up real-time spreads of 15 leading brokers here.
Swissquote provides its clients with maximum leverage of 1:100, which is considered a low ratio for the market. The broker even advises inexperienced traders to use leverage lower than this on its website, because trading on margin may lead to heavy losses, exceeding initial investments.
Nonetheless, if you need higher leverage levels, many other FCA-regulated brokers provide such: FXCM offers a maximum leverage ratio of 1:400, and FxPro – up to 1:500. More forex brokers offering leverage equal to or exceeding 1:500 can be viewed here.
The trading platforms you can choose between with Swissquote Europe are Metatrader 4 (MT4) and MetaTrader 5.
MT4 is globally popular for its innovative, on the go trading capabilities, advanced charting, extensive back-testing environment and automated trade options with Expert Advisor strategies (EA). Moreover, the Swissquote MT4 platform provides direct access to MetaTrader Trading Signals for community trading, and free use of Autochartist, an advanced tool for automated technical analysis.
The MT5, on the other hand, was developed and marketed as an improvement on MT4, yet many brokers still prefer the earlier technology, since MT5 does not support all MT4’s indicators and EAs.
You may look up more brokers supporting the MT5 here.
Methods of Payment
Clients of Swissquote Europe can make deposits to and withdrawals from their accounts via bank wire and credit card (Visa and MasterCard). Unlike most brokers, Swissquote Europe does not support e-wallets, such as Skrill, Neteller and PayPal.
Transaction fees for credit card deposits range from 1,7% to 2%.
Swissquote Europe is a market maker with typical trading conditions, but solid license. As a part of international banking group, one can be sure that any funds invested there are safe and secure.
Swissquote Europe Review Conclusion
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